Payment systems have attracted interest in recent years. They provide important linkages between different parts of the financial sector and support economic activity more generally. The weaknesses and risks in a payment system, however, can also pose a threat to financial stability. Accordingly, international and national initiatives to strengthen financial infrastructures have included the payment and settlement 'plumbing' of the financial system. This article outlines key development occurring internationally and domestically in the payment system arena, including measures affecting the Bank's operational and oversight activities.